FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions)
Successor Predecessor
-------------- -----------------------------
Period from Period from
September 25 July 1 Three months
through through ended
September 30, September 24, September 30,
-------------- -------------- --------------
2007 (1) 2007 2006
-------------- -------------- --------------
Revenues:
Transaction and
processing service fees:
Merchant services $50.2 $694.2 $693.6
Check services 6.5 97.0 80.0
Card services 32.6 440.6 429.5
Other services 6.5 88.6 88.4
Investment income, net (0.8) (29.1) (37.3)
Product sales and other 12.0 228.9 169.2
Reimbursable debit
network fees, postage
and other 28.3 415.7 363.8
-------------- -------------- --------------
135.3 1,935.9 1,787.2
-------------- -------------- --------------
Expenses:
Cost of services 67.9 932.5 781.1
Cost of products sold 5.2 75.1 76.9
Selling, general and
administrative 25.9 446.1 298.7
Reimbursable debit
network fees, postage
and other 28.3 415.7 363.8
Other operating expenses:
Restructuring, net - - 12.0
Impairments - 4.3 1.9
Litigation and
regulatory
settlements - (2.5) (42.3)
-------------- -------------- --------------
127.3 1,871.2 1,492.1
-------------- -------------- --------------
Operating profit 8.0 64.7 295.1
-------------- -------------- --------------
Other income (expense):
Interest income 3.6 9.9 13.8
Interest expense (34.6) (33.2) (72.3)
Investment gains and
(losses) (21.7) (1.1) (144.2)
Divestitures, net - 2.6 1.4
Debt repayment loss (6.0) - -
-------------- -------------- --------------
(58.7) (21.8) (201.3)
-------------- -------------- --------------
(Loss) income before
income taxes, minority
interest, equity
earnings in affiliates
and discontinued
operations (50.7) 42.9 93.8
Income taxes (a) (21.2) 18.2 4.7
Minority interest (2.5) (36.2) (34.8)
Equity earnings in
affiliates 3.3 75.3 77.0
-------------- -------------- --------------
(Loss) income from
continuing operations (28.7) 63.8 131.3
(Loss) income from
discontinued operations,
net of taxes of $0, $7.1
and $125.9, respectively
(b) - (7.1) 210.9
-------------- -------------- --------------
Net (loss) income $(28.7) $56.7 $342.2
============== ============== ==============
(1) Includes the results of operations (reflecting the change in fair
value of forward starting contingent interest rate swaps) of Omaha
Acquisition Corporation for the period prior to its merger with and
into First Data Corporation from March 29, 2007 (its formation)
through September 24, 2007. Also includes post-merger results of
First Data Corporation for the period from September 25, 2007 to
September 30, 2007.
FIRST DATA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions)
Successor Predecessor
-------------- -----------------------------
Period from Period from
September 25 January 1 Nine months
through through ended
September 30, September 24, September 30,
-------------- -------------- --------------
2007 (1) 2007 2006
-------------- -------------- --------------
Revenues:
Transaction and
processing service fees:
Merchant services $50.2 $2,063.5 $1,957.1
Check services 6.5 293.2 238.9
Card services 32.6 1,342.9 1,228.9
Other services 6.5 266.3 258.4
Investment income, net (0.8) (66.9) (96.6)
Product sales and other 12.0 616.4 504.4
Reimbursable debit
network fees, postage
and other 28.3 1,257.5 1,062.9
-------------- -------------- --------------
135.3 5,772.9 5,154.0
-------------- -------------- --------------
Expenses:
Cost of services 67.9 2,632.0 2,255.6
Cost of products sold 5.2 230.4 221.2
Selling, general and
administrative 25.9 1,089.3 856.1
Reimbursable debit
network fees, postage
and other 28.3 1,257.5 1,062.9
Other operating expenses:
Restructuring, net - 7.9 11.6
Impairments - 20.6 (0.1)
Litigation and
regulatory
settlements - 2.5 (34.8)
Other - (7.7) (0.3)
-------------- -------------- --------------
127.3 5,232.5 4,372.2
-------------- -------------- --------------
Operating profit 8.0 540.4 781.8
-------------- -------------- --------------
Other income (expense):
Interest income 3.6 30.8 23.8
Interest expense (34.6) (103.6) (190.8)
Investment gains and
(losses) (21.7) (2.6) 45.8
Divestitures, net - 6.1 8.0
Debt repayment
gain/(loss) (6.0) 1.4 -
-------------- -------------- --------------
(58.7) (67.9) (113.2)
-------------- -------------- --------------
(Loss) income before
income taxes, minority
interest, equity
earnings in affiliates
and discontinued
operations (50.7) 472.5 668.6
Income taxes (a) (21.2) 125.8 164.8
Minority interest (2.5) (105.3) (104.0)
Equity earnings in
affiliates 3.3 223.0 207.9
-------------- -------------- --------------
(Loss) income from
continuing operations (28.7) 464.4 607.7
(Loss) income from
discontinued operations,
net of taxes of $0, $3.0
and $334.3, respectively
(b) - (3.6) 627.2
-------------- -------------- --------------
Net (loss) income $(28.7) $460.8 $1,234.9
============== ============== ==============
1) Includes the results of operations (reflecting the change in fair
value of forward starting contingent interest rate swaps) of Omaha
Acquisition Corporation for the period prior to its merger with and
into First Data Corporation from March 29, 2007 (its formation)
through September 24, 2007. Also includes post-merger results of
First Data Corporation for the period from September 25, 2007 to
September 30, 2007.
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
Successor Predecessor
-------------- -----------------------------
Period from Period from
September 25 July 1 Three months
through through ended
September 30, September 24, September 30,
-------------- -------------- --------------
2007 2007 2006
-------------- -------------- --------------
Revenues:
-------------------------
First Data Commercial
Services $75.7 $1,093.8 $1,056.6
First Data Financial
Institution Services 31.9 470.2 455.2
First Data
International 29.9 395.3 331.9
Integrated Payment
Systems 2.9 24.4 26.2
-------------- -------------- --------------
Subtotal segment
revenues 140.4 1,983.7 1,869.9
All Other and Corporate 9.2 123.2 112.3
-------------- -------------- --------------
149.6 2,106.9 1,982.2
-------------- -------------- --------------
Adjustments for items
included in segment
and All Other and
Corporate revenues:
(c)
Equity earnings in
affiliates (d) (5.3) (83.5) (84.6)
Interest income (3.6) (9.9) (13.8)
Eliminations (e) (5.4) (77.6) (96.6)
-------------- -------------- --------------
Consolidated
revenue $135.3 $1,935.9 $1,787.2
============== ============== ==============
Operating profit: (f)
-------------------------
First Data Commercial
Services $11.2 $293.7 $294.1
First Data Financial
Institution Services 2.1 85.4 96.3
First Data
International 3.1 35.4 32.1
Integrated Payment
Systems 1.3 (0.5) (1.5)
-------------- -------------- --------------
Subtotal segment
operating profit 17.7 414.0 421.0
All Other and Corporate (1.4) (245.1) (36.0)
-------------- -------------- --------------
16.3 168.9 385.0
-------------- -------------- --------------
Adjustments for items
included in segment
and All Other and
Corporate operating
profit: (c)
Equity earnings in
affiliates (3.3) (75.3) (77.0)
Minority interest from
segment operations (g) 2.5 37.5 35.1
Eliminations (e) (3.9) (54.7) (62.6)
Interest expense (34.6) (33.2) (72.3)
Items excluded from
segment operations (27.7) (0.3) (114.4)
-------------- -------------- --------------
(Loss) income before
income taxes, minority
interest, equity
earnings in affiliates
and discontinued
operations $(50.7) $42.9 $93.8
============== ============== ==============
Depreciation &
Amortization:
-------------------------
First Data Commercial
Services $11.3 $72.0 $77.2
First Data Financial
Institution Services 6.2 37.2 38.8
First Data
International 4.1 53.3 45.2
Integrated Payment
Systems - 1.0 4.0
All Other and Corporate 1.2 11.7 11.7
-------------- -------------- --------------
Total consolidated
depreciation &
amortization from
continuing operations $22.8 $175.2 $176.9
============== ============== ==============
(See accompanying notes)
FIRST DATA CORPORATION
SUMMARY SEGMENT DATA
(Unaudited)
(in millions)
Successor Predecessor
-------------- -----------------------------
Period from Period from
September 25 January 1 Nine months
through through ended
September 30, September 24, September 30,
-------------- -------------- --------------
2007 2007 2006
-------------- -------------- --------------
Revenues:
-------------------------
First Data Commercial
Services $75.7 $3,255.5 $3,021.3
First Data Financial
Institution Services 31.9 1,442.2 1,352.0
First Data
International 29.9 1,164.6 894.8
Integrated Payment
Systems 2.9 106.9 91.3
-------------- -------------- --------------
Subtotal segment
revenues 140.4 5,969.2 5,359.4
All Other and Corporate 9.2 337.1 337.0
-------------- -------------- --------------
149.6 6,306.3 5,696.4
-------------- -------------- --------------
Adjustments for items
included in segment
and All Other and
Corporate revenues:
(c)
Equity earnings in
affiliates (d) (5.3) (248.6) (230.0)
Interest income (3.6) (30.8) (23.8)
Eliminations (e) (5.4) (254.0) (288.6)
-------------- -------------- --------------
Consolidated
revenue $135.3 $5,772.9 $5,154.0
============== ============== ==============
Operating profit: (f)
-------------------------
First Data Commercial
Services $11.2 $816.2 $786.0
First Data Financial
Institution Services 2.1 280.8 275.1
First Data
International 3.1 111.1 94.8
Integrated Payment
Systems 1.3 24.2 5.2
-------------- -------------- --------------
Subtotal segment
operating profit 17.7 1,232.3 1,161.1
All Other and Corporate (1.4) (345.5) (88.7)
-------------- -------------- --------------
16.3 886.8 1,072.4
-------------- -------------- --------------
Adjustments for items
included in segment
and All Other and
Corporate operating
profit: (c)
Equity earnings in
affiliates (3.3) (223.0) (207.9)
Minority interest from
segment operations (g) 2.5 107.3 101.2
Eliminations (e) (3.9) (176.6) (183.7)
Interest expense (34.6) (103.6) (190.8)
Items excluded from
segment operations (27.7) (18.4) 77.4
-------------- -------------- --------------
(Loss) income before
income taxes, minority
interest, equity
earnings in affiliates
and discontinued
operations $(50.7) $472.5 $668.6
============== ============== ==============
Depreciation &
Amortization:
-------------------------
First Data Commercial
Services $11.3 $229.1 $231.1
First Data Financial
Institution Services 6.2 115.8 115.0
First Data
International 4.1 156.4 130.2
Integrated Payment
Systems - 4.2 11.6
All Other and Corporate 1.2 34.7 34.3
-------------- -------------- --------------
Total consolidated
depreciation &
amortization from
continuing operations $22.8 $540.2 $522.2
============== ============== ==============
(See accompanying notes)
FIRST DATA CORPORATION
NOTES TO FINANCIAL SCHEDULES
(Unaudited)
(a) FDC's effective tax rate on pretax income from continuing
operations was a benefit of 42.5% for the successor period from
September 25 through September 30, 2007, and an expense of 22.2%
for the predecessor period from July 1 through September 24, 2007
and 21.3% for the predecessor period from January 1 through
September 24, 2007 and 3.4% and 21.3% for the predecessor three
and nine-month periods ending September 30, 2006, respectively.
(b) Discontinued operations relate to NYCE, Western Union, Primary
Payment Systems, IDLogix and Taxware.
(c) Reconciles the total segment and All Other and Corporate revenue
to consolidated revenue or total segment and All Other and
Corporate operating profit to income before income taxes,
minority interest, equity earnings in affiliates and discontinued
operations as reported on the Consolidated Statements of Income.
(d) Excludes equity losses that were recorded in expense and the
amortization related to the excess of the investment balance over
the company's proportionate share of the investee's net book
value.
(e) Represents elimination of adjustment to record Integrated Payment
Systems segment investment income and its related operating
profit on a pretax equivalent basis and elimination of
intersegment revenue.
(f) Segment and All Other and Corporate operating profit includes
interest income, minority interest from segment operations,
equity earnings in affiliates and the allocation of corporate
overhead. Segment and All Other and Corporate operating profit
excludes restructuring charges, asset impairments, significant
litigation and regulatory settlements, other charges, interest
expense, investment gains and losses, business divestiture gains
and losses and debt repayment costs and gains.
(g) Minority interest from segment operations excludes minority
interest attributable to items excluded from segment operations
discussed in note (f) above as well as minority interest related
to interest expense and income taxes.
FIRST DATA CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
($ in millions)
Management believes the following non-GAAP measures provide meaningful
supplemental information to assist investors in understanding our
financial results and to better analyze trends in our underlying
business. These non-GAAP financial measures should not be considered
in isolation or as a substitute for the most comparable GAAP
financial measures. The non-GAAP financial measures reflect an
additional way of viewing aspects of our operations that, when viewed
with our GAAP results and the reconciliation to the corresponding
GAAP financial measures, provide a more complete understanding of our
business. Investors are strongly encouraged to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. A reconciliation of the non-
GAAP measures to the most directly comparable GAAP financial measures
is included below.
Non-GAAP measures for the company's domestic segments exclude revenue
earned from reimbursements of pass-through costs such as debit
network fees and postage. Non-GAAP measures for the company's
international segment exclude acquisitions less than a year old,
divestitures and foreign exchange impact from revenue. Non-GAAP
measures for the company's international and domestic segments also
exclude purchase accounting adjustments and accelerated stock based
compensation expense related to the Transaction.
For the purpose of analyzing the company's liquidity, "Adjusted
EBITDA" and "Adjusted EBITDA excluding projected near-term cost
savings" metrics are used. "Adjusted EBITDA" is different than
"EBITDA" as defined in the Credit Agreement dated September 24, 2007
("Senior Secured Credit Facilities") among the company, the lenders
or other entities that are a party thereto from time to time and
Credit Suisse, Cayman Islands Branch, as Administrative Agent and
Collateral Agent. The difference primarily relates to adjustments for
minority interest, equity losses, certain acquisition expenses and
taxes, depreciation and amortization within the company's equity
investments. Additionally, income from continuing operations has been
adjusted for Merger Impacts. Management believes that these non-GAAP
measures provide insight into the company's financial results and
trends.
The financial information presented for the quarter and year to date
ending September 30, 2007 is presented for two periods: Predecessor
and Successor, which primarily relate to the periods preceding the
Transaction and the period succeeding the Transaction, respectively.
The following quarterly 2007 financial information is presented on a
combined basis which includes the successor period from September 25,
2007 through September 30, 2007 and the predecessor period from July
1, 2007 through September 24, 2007. The year to date financial
information is presented on a combined basis which includes the
successor period from September 25, 2007 through September 30, 2007
and the predecessor period from January 1, 2007 through September 24,
2007. Management believes that the presentation on a combined basis
is more meaningful as it allows the results of operations to be
compared to a similar period in 2006.
Combined Predecessor
-------------- --------------
Three months Three months
ended ended
September 30, September 30,
-------------- --------------
2007 2006 Change
-------------- -------------- -------
Income from continuing
operations $35.1 $131.3 -73%
Interest expense, net (1) 54.3 58.5
Income taxes (3.0) 4.7
Depreciation and amortization 198.0 176.9
-------------- --------------
EBITDA $284.4 $371.4
Stock based compensation (2) 215.0 14.5
Other items (3) 20.5 114.1
Debt repayment loss (4) 6.0 -
Pretax equivalency adjustment
(5) 58.6 62.6
Integrated Payment Systems
segment EBITDA (6) (1.6) (2.3)
Cost of data center and
technology initiatives (7) 20.9 1.0
Western Union spin-off costs (8) - 16.8
Pre-acquisition EBITDA of
acquired businesses (9) 2.5 18.3
Transaction related fees 53.8 -
Sponsor's annual management fee 0.3 -
-------------- --------------
Adjusted EBITDA excluding
projected near-term cost
savings $660.4 $596.4 11%
Projected near-term cost savings
(10) 50.0 -
-------------- --------------
Adjusted EBITDA $710.4 $596.4
============== ==============
Combined Predecessor
-------------- --------------
Nine months Nine months
ended ended
September 30, September 30,
-------------- --------------
2007 2006 Change
-------------- -------------- -------
Income from continuing
operations $435.7 $607.7 -28%
Interest expense, net (1) 103.8 167.0
Income taxes 104.6 164.8
Depreciation and amortization 563.0 522.2
-------------- --------------
EBITDA $1,207.1 $1,461.7
Stock based compensation (2) 267.0 53.4
Other items (11) 39.4 (74.7)
Debt repayment loss, net of gain
(4) 4.6 -
Pretax equivalency adjustment
(5) 179.6 183.7
Integrated Payment Systems
segment EBITDA (6) (29.1) (16.6)
Cost of data center and
technology initiatives (12) 51.2 4.4
Western Union spin-off costs (8) - 20.3
Pre-acquisition EBITDA of
acquired businesses (9) 20.1 54.5
Transaction related fees 69.7 -
Sponsor's annual management fee 0.3 -
-------------- --------------
Adjusted EBITDA excluding
projected near-term cost
savings $1,809.9 $1,686.7 7%
Projected near-term cost savings
(10) 150.0 -
-------------- --------------
Adjusted EBITDA $1,959.9 $1,686.7
============== ==============
Combined Predecessor
-------------- --------------
Three months Three months
ended ended
September 30, September 30,
-------------- ----------------------
2007 2006 Change
-------------- -------------- -------
Income from continuing
operations $35.1 $131.3 -73%
Merger related costs 44.9 -
Accelerated stock based
compensation and related
payroll taxes 122.6 -
Amortization related to purchase
accounting 6.3 -
Incremental net interest expense 18.4 -
Non-recurring charges related to
debt repayment loss and non
cash derivative losses of the
corporation merged into the
company 15.9 -
-------------- --------------
Income from continuing
operations excluding Merger
Impacts $243.2 $131.3 85%
============== ==============
Combined Predecessor
-------------- --------------
Nine months Nine months
ended ended
September 30, September 30,
-------------- ----------------------
2007 2006 Change
-------------- -------------- -------
Income from continuing
operations $435.7 $607.7 -28%
Merger related costs 58.2 -
Accelerated stock based
compensation and related
payroll taxes 122.6 -
Amortization related to purchase
accounting 6.3 -
Incremental net interest expense 18.4 -
Non-recurring charges related to
debt repayment loss and non
cash derivative losses of the
corporation merged into the
company 15.9 -
-------------- --------------
Income from continuing
operations excluding Merger
Impacts $657.1 $607.7 8%
============== ==============
Combined Predecessor
-------------- --------------
Three months Three months
ended ended
September 30, September 30,
-------------- ----------------------
2007 2006 Change
-------------- -------------- -------
Commercial Services
--------------------------------
Revenue $1,169.5 $1,056.6 11%
Purchase accounting adjustments (0.4) -
-------------- --------------
Revenue excluding purchase
accounting adjustments $1,169.1 $1,056.6 11%
============== ==============
Operating profit $304.9 $294.1 4%
Purchase accounting adjustments 6.3 -
Accelerated stock based
compensation expense 4.1 -
-------------- --------------
Operating profit excluding
purchase accounting adjustments
and accelerated stock based
compensation expense $315.3 $294.1 7%
============== ==============
Profit margin 26.1% 27.8%
Revenue $1,169.5 $1,056.6 11%
Reimbursable debit network fees
(DNF) (256.8) (204.1)
-------------- --------------
Revenue excluding DNF $912.7 $852.5 7%
============== ==============
Revenue $1,169.5 $1,056.6 11%
Purchase accounting adjustments (0.4) -
DNF (256.8) (204.1)
-------------- --------------
Revenue excluding purchase
accounting adjustments and DNF $912.3 $852.5 7%
============== ==============
Operating profit $304.9 $294.1 4%
Purchase accounting adjustments 6.3 -
Accelerated stock based
compensation expense 4.1 -
-------------- --------------
Operating profit excluding
purchase accounting adjustments
and accelerated stock based
compensation expense $315.3 $294.1 7%
============== ==============
Profit margin excluding purchase
accounting adjustments,
accelerated stock based
compensation expense and DNF 34.6% 34.5%
Combined Predecessor
-------------- --------------
Three months Three months
ended ended
September 30, September 30,
-------------- ----------------------
Financial Institution Services 2007 2006 Change
-------------------------------- -------------- -------------- -------
Revenue $502.1 $455.2 10%
Purchase accounting adjustments (0.3) -
-------------- --------------
Revenue excluding purchase
accounting adjustments $501.8 $455.2 10%
============== ==============
Operating profit $87.5 $96.3 -9%
Purchase accounting adjustments 3.5 -
Accelerated stock based
compensation expense 2.5 -
-------------- --------------
Operating profit excluding
purchase accounting adjustments
and accelerated stock based
compensation expense $93.5 $96.3 -3%
============== ==============
Profit margin 17.4% 21.2%
Revenue $502.1 $455.2 10%
Reimbursable postage and other (173.9) (148.1)
-------------- --------------
Revenue excluding reimbursable
postage and other $328.2 $307.1 7%
============== ==============
Revenue $502.1 $455.2 10%
Purchase accounting adjustments (0.3) -
Reimbursable postage and other (173.9) (148.1)
-------------- --------------
Revenue excluding purchase
accounting adjustments and
reimbursable postage and other $327.9 $307.1 7%
============== ==============
Operating profit $87.5 $96.3 -9%
Purchase accounting adjustments 3.5 -
Accelerated stock based
compensation expense 2.5 -
-------------- --------------
Operating profit excluding
purchase accounting adjustments
and accelerated stock based
compensation expense $93.5 $96.3 -3%
============== ==============
Profit margin excluding purchase
accounting adjustments,
accelerated stock based
compensation expense and
reimbursable postage and other 28.5% 31.4%
Combined Predecessor
-------------- --------------
Three months Three months
ended ended
September 30, September 30,
-------------- ----------------------
First Data International 2007 2006 Change
-------------------------------- -------------- -------------- -------
Revenue $425.2 $331.9 28%
Purchase accounting adjustments (0.2) -
-------------- --------------
Revenue excluding purchase
accounting adjustments $425.0 $331.9 28%
============== ==============
Operating profit $38.5 $32.1 20%
Purchase accounting adjustments (0.1) -
Accelerated stock based
compensation expense 1.8 -
-------------- --------------
Operating profit excluding
purchase accounting adjustments
and accelerated stock based
compensation expense $40.2 $32.1 25%
============== ==============
Profit margin 9.1% 9.7%
Profit margin excluding purchase
accounting adjustments and
accelerated stock based
compensation expense 9.5% 9.7%
Organic Revenue Constant
Currency
--------------------------------
Revenue $425.2 $331.9 28%
Acquisitions less than a year
old (43.2) -
Divestitures - (1.7)
Foreign exchange impact (13) (25.3) -
-------------- --------------
Organic revenue on a constant
currency basis $356.7 $330.2 8%
============== ==============
Organic Revenue Constant
Currency Excluding Purchase
Accounting
--------------------------------
Revenue $425.2 $331.9 28%
Purchase accounting adjustments (0.2) -
Acquisitions less than a year
old (43.2) -
Divestitures - (1.7)
Foreign exchange impact (13) (25.3) -
-------------- --------------
Organic revenue on a constant
currency basis excluding
purchase accounting adjustments $356.5 $330.2 8%
============== ==============
(1) Includes interest expense and interest income.
(2) Stock based compensation recognized as expense and related payroll
taxes.
(3) Other items include net restructuring, impairments, litigation and
regulatory settlements, investment losses, net divestiture gains and
certain minority interest adjustments.
(4) Loss and net loss resulting from the early repayment of long-term
debt for the three and nine months ended September 30, 2007,
respectively.
(5) Represents an adjustment to reflect Integrated Payment Systems
segment operating results as if the underlying investments were held
in taxable securities rather than the tax-free municipal securities
in which they are actually held.
(6) Represents an adjustment to exclude Integrated Payment Systems
from EBITDA due to the company's announcement to wind down the
official check and money order businesses of the segment, which
comprise the majority of the segment's operations.
(7) Represents expense of $13.4 million and $1.0 million associated
with platform and data center consolidation initiatives in the First
Data International segment for the three months ended September 30,
2007 and 2006, respectively, considered one-time projects, and
expense of $7.5 million associated with domestic data center
consolidation initiatives considered one-time projects, estimated to
be completed in 2009, for the three months ended September 30, 2007.
(8) Represents consulting fees expensed during 2006 related to the
Western Union spin-off which occurred on September 29, 2006.
(9) Reflects the EBITDA of companies acquired after January 1, 2006
through September 30, 2007 as if these companies had been acquired on
January 1, 2006.
(10) Reflects costs savings projected to be achieved within twelve
months (the majority of which, at this time, are associated with
certain corporate overhead and operational business unit cost
reduction efforts).
(11) Other items include net restructuring, impairments, litigation
and regulatory settlements, investment gains and losses, net
divestiture gains, certain minority interest adjustments and other.
(12) Represents expense of $35.6 million and $4.4 million associated
with platform and data center consolidation initiatives in the First
Data International segment for the nine months ended September 30,
2007 and 2006, respectively, considered one time projects, and
expense of $15.6 million associated with domestic data center
consolidation initiatives considered one-time projects, estimated to
be completed in 2009, for the nine months ended September 30, 2007.
(13) Foreign exchange impact represents the difference between actual
2007 revenue and 2007 revenue calculated using 2006 exchange rates.